Interview: Mani Abraham V, Area Sales Manager – Construction Industries Services Division, Caterpillar India

Caterpillar is showcasing its latest launches at EXCON under the themes ‘Redefining the Future’ and ‘Efficiency Reimagined.’ What are the key innovations behind these new machines, and how do they reflect these themes?
This marks a completely new launch for us at EXCON. We are introducing three new excavators—the 320, 323, and 324—covering the entire 20–24-ton segment with multiple configurations to address diverse customer needs. The theme ‘Redefining the Future’ reflects the fact that these machines are designed exclusively for India. They are not global models adapted for the market; rather, they are developed based on extensive feedback from Indian customers and tailored to local operating conditions and expectations. ‘Efficiency Reimagined’ focuses on lowering total cost of ownership. With fuel accounting for nearly 60% of operating costs, these new excavators deliver around 10% lower fuel consumption compared to previous models—without any compromise on productivity. The result is a smarter, more productive, and fuel-efficient machine that directly enhances customer profitability. Going forward, our priority remains staying close to customers, understanding their challenges, and delivering solutions that truly improve efficiency and ease of operation.

What are the key unique selling points of these newly launched products, and how do they differentiate Caterpillar from other offerings in the market?
Our biggest USP is fuel efficiency—these machines deliver the lowest fuel consumption in their segment, helping customers cut operating costs significantly. Along with that, we’ve introduced segment-first technology: an electronic engine with electro-hydraulics supported by smart, eco and power modes for better machine control and higher efficiency. Customers can also monitor fuel usage, idle hours, machine health and fault codes remotely through our VisionLink app, giving them complete visibility and faster decision-making. And of course, the Caterpillar strengths of durability, reliability and high productivity continue. In short, lower cost of operation, advanced technology and superior product performance are what set these machines apart.

Which sectors are currently driving demand, and where do you see the strongest growth opportunities going forward?
Demand in the construction equipment industry is being driven primarily by road building and urban infrastructure projects. While the current year has been relatively flat, we expect a strong upswing in infrastructure activity over the next three to five years, leading up to 2030. This outlook is a key reason behind our India-specific product strategy, aimed at helping customers execute projects faster and more efficiently. We are also seeing expansion in quarry and mining operations, with larger crushing plants now reaching 300–350 TPH. Our 324 excavators, equipped with a 1.3-cubic-metre bucket, is well suited to deliver the higher productivity these projects demand. With increasing cost pressures, lower total cost of ownership remains critical. Overall, we see sustained growth for the CE sector, with excavators growing faster and increasingly matching backhoe volumes as project requirements evolve.

Which macroeconomic factors—such as pricing strategies, exchange rates, or rising raw material costs—have the greatest impact on your industry?
Among the macro factors, the most influential driver for our industry is the demographic shift. India’s population is expanding, and a significant share is moving towards urban centres. Over the next three to five years, close to 40% of the country’s population is expected to be urban. This shift naturally creates a massive requirement for housing, road networks, transportation links and overall infrastructure development. This demand for large-scale infrastructure to support urban growth is what is fuelling the construction equipment market. While factors like pricing, exchange rates and material costs do play a role, the core macro force shaping the industry is the need to build infrastructure for a rapidly growing urban population. That is where we see the strongest momentum going forward.

Are you seeing opportunities shift to Tier-II and Tier-III cities?
Yes, definitely. Earlier, most demand came from NHAI and state infrastructure projects. Now, we are seeing increasing opportunities in rural areas, including irrigation projects, well digging, and small-scale sand mining. Our smaller excavators are ideal for these applications, as they are fuel-efficient and perfectly suited to meet the needs of customers in these markets.

How does your Customer Value Agreement (CVA) work, and what kind of support does it provide to machine owners?
The Customer Value Agreement (CVA) is offered at the point of sale to support customers throughout the life of their machine. Depending on their needs, customers can opt for 1-year, 2-year, or 3-year agreements. For example, in a 2-year CVA, the customer only needs to provide fuel—the dealer takes care of all maintenance. We also provide condition monitoring via our Dealer team using electronic engine diagnostics and VisionLink. Fault codes from the machine are sent to our database, analyzed, and alerts are sent to the dealer. For instance, if there’s a low engine oil pressure warning, the dealer contacts the customer to stop the machine and performs the necessary maintenance immediately.

What percentage of your machines currently have telematics installed, and are you also retrofitting older machines?
Currently, 90% of our installed machines have telematics. Today, all machines come with telematics from the factory. Additionally, we are retrofitting older machines that were manufactured before this feature was standard, ensuring that all our customers’ equipment can be monitored and maintained efficiently.

Can you elaborate on the safety features in your products?
Safety is a core value for us, much like Caterpillar’s approach. Every product is designed with safety and operator comfort in mind. For instance, our excavators feature advanced cabins with air-suspension seats, air conditioning, Bluetooth connectivity, rear-view cameras, and protective cab guards. Beyond the machines, we prioritise the safety of our employees and dealers on site, mandating PPE and maintaining certified safe workshops. Safety drives both our product design and our operational practices.

What after-sales support and spare parts infrastructure do you offer in India, and how are you leveraging technology, including AI, to enhance customer service?
We have a robust parts distribution network across India. Parts are stocked at regional hubs, dealer warehouses, and local branches, ensuring quick availability wherever the customer operates. On the technology front, Caterpillar uses AI extensively. Connected machines send data, and AI analyses potential issues, such as hydraulic or engine anomalies, before they become failures. Dealers are alerted proactively to inspect and repair, preventing costly breakdowns. This predictive approach reduces downtime, lowers repair costs, and ensures machines remain operational—an innovation that is transforming after-sales service in the construction equipment industry.

What are the latest innovations your company is bringing to the market?
Our innovation is driven entirely by customer needs – we don’t expect customers to adapt to us; we adapt to them. Ensuring maximum machine uptime is a key focus. Over the past 100 years, our products have continuously evolved, from drivetrains to undercarriage design, using patented materials and designs. Our latest innovation lies in supporting customers through advanced aftermarket services, combining product improvements with proactive service solutions to maximize performance and reliability.

Where do you see the company in the next two to three years?
Over the next few years, we plan to introduce several new products based on market needs. While it’s hard to predict exact production numbers due to the variety of products,. Our goal is to increase our market share and continue strengthening our presence with customers across India.